Cancer Genetics plans public offering to raise $15 million

By August 14, 2013 at 12:03 PM

Cancer Genetics Inc., a Rutherford maker of cancer diagnostics tests, has announced a public offering intended to raise capital of near $15 million for increased sales and marketing. The company's stock also began trading on the Nasdaq exchange today.

Cancer Genetics priced its offering of 1.5 million shares at $10 per share, which would gross $15 million before underwriting payouts and other expenses.

The offering, expected to close Monday, is designed to boost the company's sales and marketing efforts, further product commercialization, invest in its joint Mayo Clinic, advance research and development, retire certain financing, and cover other needs.

The early-stage company, which develops genomic-based oncology tests to improve cancer diagnosis, has begun boosting its sales team, aided by a 54 percent year-to-date revenue increase. Cancer Genetics added headcount in the Midwest and New York in the second quarter, and said it plans to add sales representatives in northern New Jersey.

Cancer Genetics stock, which has traded over the counter since its April IPO, is now listed on Nasdaq under the symbol "CGIX." Shares fell $1.50, or 13.5 percent, to $9.60 in morning trading.

The investment climate has mostly treated biotech stocks favorably this year. The Nasdaq Biotechnology Index, which tracks leading biotechnology and pharmaceuticals stocks, is up 37 percent year to date.

Related to the offering, Cancer Genetics has also granted the representative of the underwriters a 45-day option to purchase up to 225,000 additional shares from the company to cover over-allotments, if any.